Taxation (Multinational - Global and Domestic Minimum Tax) Rules 2024

CHAPTER 9 - TRANSITION RULES  

PART 9-3 - EXCLUSION FROM THE UTPR OF MNE GROUPS IN THE INITIAL PHASE OF THEIR INTERNATIONAL ACTIVITY  

SECTION 9-40   TOTAL UTPR TOP-UP TAX AMOUNT REDUCED TO ZERO  

9-40(1)    
The Total UTPR Top-up Tax Amount for an MNE Group for a Fiscal Year covered by subsection (2) is taken to be zero if:

(a)    the Constituent Entities of the MNE Group are located in no more than 6 jurisdictions for the Fiscal Year; and

(b)    the sum of the Net Book Value of Tangible Assets for the Fiscal Year of each Constituent Entity of the MNE Group located in a jurisdiction other than the Reference Jurisdiction of the MNE Group does not exceed 50 million Euros.

9-40(2)    
This subsection covers a Fiscal Year if:

(a)    it starts on or after the first day of the first Fiscal Year for which the MNE Group is an Applicable MNE Group; and

(b)    it starts on or after 1 January 2024.

9-40(3)    
For the purposes of subsection (1) , disregard a Constituent Entity of the MNE Group that is an Investment Entity or an Insurance Investment Entity.

9-40(4)    
For the purposes of paragraph (1)(b) , in relation to a tangible asset of a Stateless Constituent Entity of the MNE Group:

(a)    if the tangible asset is physically located in the Reference Jurisdiction throughout the Fiscal Year - treat it as a tangible asset of a Constituent Entity of the MNE Group located in the Reference Jurisdiction; or

(b)    otherwise - treat it as a tangible asset of a Constituent Entity of the MNE Group located in a jurisdiction other than the Reference Jurisdiction.